Updated
GL-R-07
Glossary · Cyprus PR
Reservation agreement in Cyprus - the property held for you while it is checked
A short agreement that takes the property off the market while it is checked
01 / In 30 seconds
The short answer
- What it is
- A short agreement that takes the property off the market while it is checked
- Term
- Usually 2-4 weeks
- Deposit
- Typically €2,000-10,000, credited to the price
- Key clause
- The deposit is refunded if the lawyer's checks find a problem
02 / In plain words
What Reservation agreement in Cyprus means
A reservation agreement is a short contract between buyer and seller. The seller takes the property off the market, the buyer pays a small deposit, and the lawyer uses that time to check the property.
A reservation usually runs 2-4 weeks and the deposit in practice is €2,000 to €10,000, credited to the price on purchase. Amount and term are agreed between the parties; the law does not fix them.
The key thing we write into the reservation agreement: the deposit is refunded if the lawyer's checks find a problem - a mortgage without a bank letter, missing permits, another buyer's contract on the property. We reserve only after checking the client and the route of the money.
A simple example
A client picks a flat in Limassol and signs a 3-week reservation with a €5,000 deposit. The lawyer finds a developer mortgage, the bank issues a release letter for the flat, and two weeks later the parties sign the sale contract. The deposit is credited to the price.
When you need a reservation agreement
- You like a unit in a new development
- High demand for the flat
- Time is needed for the lawyer's checks
- Time is needed for a tax number and bank account
- Buying from abroad
03 / What it covers
What a reservation agreement covers
Property
- Unit and plot number
- Price
- Reservation term
Deposit
- Amount
- Where it is paid
- Credited to the price
Refund
- If checks find a problem
- If the seller backs out
- Refund timing
Next steps
- Sale contract
- Payment schedule
- Search certificate for the contract
04 / How it works
How a reservation works
Client checks
Sanctions, source of funds, income - before reserving.
Reservation agreement
Property off the market, refund clause included.
Deposit
A small sum to the seller or the lawyer's client account.
Property checks
Title, certificate, mortgage, permits, VAT.
Sale contract
Signed only if the checks are clean.
05 / Key facts
What matters
01Term
2-4 weeks
Enough for the lawyer's checks and drafting the sale contract. If more time is needed, the term is extended by agreement.
02Deposit
€2,000-10,000
A typical range in practice. Credited to the price on purchase.
03Refund
Agreed in advance
If the lawyer finds a problem with the property, the deposit comes back. Without this clause the money can be lost.
04For PR
Not counted on its own
To apply you need €300,000 paid and a deposited sale contract. The reservation is only the first step.
Common mistakes
Paying a deposit without a refund clause
The reservation agreement states the deposit is refunded if the checks find a problem.
Reserving before the client is checked
We check the source of funds and payment route first. If the bank will not accept them, the reservation is useless.
Treating the reservation as a purchase contract
A reservation only takes the property off the market. Rights come from the sale contract and its deposit at the DLS.
06 / Expert advice
How to prepare in advance
Before reserving, have your passport and proof of income ready and be able to explain where the money comes from. Decide which personal account abroad the payment will come from.
What we do for you. We draft the reservation agreement with a refund clause and use the reservation period to check the property down to the last entry.
Igor VentsHead of real estate, Title Deed and property checks
07 / Questions
Frequently asked questions
A short agreement that takes the property off the market while it is checked.
Usually 2-4 weeks; it can be extended by agreement.
In practice €2,000-10,000. It is credited to the price.
Yes, if the agreement has a refund clause for failed checks. We always include one.
No. Rights come from a sale contract deposited with the DLS.
Yes. The agreement is signed remotely and the deposit is paid from your personal account.
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